ompany is authorized to issue 200,000 shares of its S1 par value common stock and plans to sell 40,000 shares of the stock for $35 per share. What would be the amount of Additional Paid in Capital Common Stock to be recorded in the books? A) $200,000 B) $1,360,000 C) $40,000 D) $1,400,000 15) When employing a strategy of financial leverage: A) the cost of using borrowed funds should be less than the return generated by the borrowed funds B) the interest rate on borrowed funds should be more than the rate of return on owners' equity C) the goal of the corporation is to have zero liabilities D) the main goal is the highest possible total income 16) At the time a company borrows additional money, how are the debt to equity and times interest earned ratios Times Interest FarnedDebt to Equity Total Liabilities A. B. C. D. Increases Decreases Decreases Total Owners Equity Increases Decreases Increases Decreases Interest Expense 17) A corporation had retained earnings of $300,000 at December 31, 2017. Net income for 2018 was $78,000 and the company paid a cash dividend of $30,000. Also, the company repurchased shares of its stock during the year at a cost of $150,000. The balance of retained earnings at December 310, 2018 would be: a) $348,000 b) $252,000 c) $198,000 d) $408,000 stock. The noncumulative preferred stock has a S20 par value, a i 0% dividend, and has not paid dividends for the past three years. ABC has 100,000 shares of common stock issued and outstanding and 10,000 shares of preferred stock issued and outstanding. If the board declares a $300,000 dividend, how much goes to preferred stockholders and how much goes to common stockholders? 18) ABC Company is authorized to issue 500,000 shares of $I common stock and 50,000 shares of prefered A) $100,000; $200,000 B) S30,000; $270,000 C) S10,000;$290,000 D) $20,000; $280,000 will go to preferred stockholders and how much to common stockholders? a) S120.000; $180,000 b) $30,000; $270,000 c) $60,000; $240,000 d) $80,000; $220,000 Assume that the preferred stock is cumulative. How much of the $300,000 dividend 19) Refer to 18) above